Idan Ofer Celebrates: ICL Reports 3-Year Profit Record

ICL Group, the company controlled by Idan Ofer, published strong results this morning for the second quarter of 2026, while simultaneously announcing a deep change in the organizational structure that will accompany it for the coming years.

ICL is among the largest stocks in the TA-35 index, and therefore it sits in almost every pension portfolio, training fund, or provident fund managed in Israel. What happens to it affects, directly and indirectly, the long-term savings of millions of people.

Sales for the quarter totaled approximately $2.1 billion, a 17% jump compared to the same quarter last year. Operating profit jumped to $266 million compared to $181 million — according to the company, its highest quarterly operating profit in the last three years.

Net profit attributable to shareholders climbed to $137 million compared to $93 million, and adjusted EBITDA rose by almost $100 million to $448 million. Free cash flow, the metric most interesting to those examining dividend distribution, also grew by 34% to $94 million.

Behind the positive headline hides an interesting story about growth engines. It was precisely the industrial products activity, led by bromine in which ICL dominates the global market, that led the jump: operating profit in the field almost doubled compared to last year. Conversely, the essential minerals activity (potash and phosphate) presented a more moderate quarter and even retreated slightly compared to the previous quarter.

In other words, the strength this time came from the specialized and high-margin activities, exactly the places where the company is trying to shift its center of gravity.

The company also announced that it is reaffirming its forecast and expects that the adjusted EBITDA for 2026 will be between $1.5 and $1.7 billion. The volume of potash sales for 2026 is expected to be in the range of 4.5 to 4.7 million tons.

Alongside the results, the board of directors approved a reorganization that will take effect on January 1, 2027, in which the divisions will be organized around three end markets — agriculture, food, and industry — instead of around types of minerals.

Instead of the old division, from 2027 the reports will present four new segments: growth solutions (specialty fertilizers), nutrition solutions (components for the food and health industries), industrial products (mainly electronics, energy, and construction), and essential minerals (potash and phosphate).

The move is derived from the strategy the company presented in November 2025, built on three principles: driving profitable growth through specialty products, extracting value from core businesses, and improving efficiency. Alongside the structural change, the company set a cost-saving target of more than $350 million.

Commodity companies trade at low and volatile multiples, while specialized activities in food, agriculture, and industry are perceived as more stable and profitable, and are priced more generously in the market. If the reorganization succeeds in sharpening this identity, it may over time also support the stock value, and indirectly the return of the savers who hold it without knowing.

However, it is worth keeping proportions. ICL's profitability still depends to a large extent on global potash and phosphate prices, which are inherently volatile and influenced by geopolitical tensions, including shipping disruptions in the Middle East region and the Strait of Hormuz. An organizational structure change, however successful it may be, does not immunize against falling commodity prices.

It is also important to remember that the historical data the company published according to the new structure are preliminary, before audit, and may still change. The bottom line for investors: a good quarter and a clear strategic direction, but not the final word — much still depends on the commodity markets.

Elad Aharonson, President and CEO of ICL, stated:

"ICL beat market expectations in the second quarter and presented solid growth in all key financial metrics, both compared to the same quarter and relative to the previous quarter, with all four operating segments contributing to the significant increase in revenues. This is another quarter in which we benefited from our unique global footprint, with our sales and operations teams working in close proximity to customers and end markets. We successfully leveraged opportunities created in a dynamic market environment, while continuing to constantly examine macro factors that are not under our control, with the goal of responding quickly to changes in market conditions."

Aharonson added:

"As part of the implementation of our strategy, we intend to adapt the company's organizational structure at the beginning of 2027. The new structure is expected to strengthen management focus on our key growth engines and align the company's operating model with its strategic directions. We believe that the new structure will provide investors with better visibility regarding the company's performance, growth engines, and the value creation potential of the various operating segments."

Within the new organizational structure, the company's activity will be managed through four reporting segments: nutrition solutions, industrial products, growth solutions, and essential minerals.

Three of the business divisions will focus on solutions for end markets: the nutrition solutions division, which will unite all food and beverage, health, nutrition, and pharma products into one segment; industrial products, which will focus on solutions for increasing safety and improving performance capabilities in products for all industrial end markets; and growth solutions, which will continue to focus on plant nutrition solutions and specialty fertilizers in the agriculture, turf, and ornamental plant markets. The fourth segment, essential minerals, will include potash and phosphate fertilizers from production sites up the value chain (Upstream) — potash from the Dead Sea and Spain and phosphate from the Negev and China — and will continue to serve the global agriculture market."

Aharonson added:

"During the second quarter, we launched a cross-organization cost-saving program called Elevate. The program is designed to reduce the company's cost base, support increased profitability margins, strengthen cash flow, and increase the company's earning power. Implementation of the program began during the third quarter, and we expect to achieve annual savings of over $350 million by the end of 2028, with an initial contribution expected as early as the beginning of 2027."